European stocks edge higher; inflation data in focus
Investing.com — European stock markets rose Thursday, rebounding after recent losses as investors digested regional inflation data and the outlook for central bank rate cuts.
At 03:10 ET (08:10 GMT), the DAX index in Germany traded 0.3% higher, the CAC 40 in France traded up 0.3% and the FTSE 100 in the U.K. rose 0.4%.
European equities retreated on Wednesday, handing back some of the gains seen late last year that pushed the regional indices close to two-year highs as investors dialled back their bets for a U.S. soft landing and rapid Fed rate cuts.
However, this tone has changed as while the minutes of the Fed December meeting, released late Wednesday, didn't provide many clues as to the likely timing of the first rate cut by the Federal Reserve, but they did indicate a growing sense that inflation is under control and concern about the risks that «overly restrictive» monetary policy may pose to the economy.
Adding to this, back in Europe, French inflation came in softer than expected earlier Thursday, with consumer prices rising 0.1% on the month in December, an annual rise of just 3.7%.
There is further inflation data to digest Thursday, in the form of consumer prices from the individual German states, as well as services PMI numbers from most of the region.
In corporate news, Next (LON:NXT) stock rose over 5% after the U.K. retailer raised its full-year profit guidance after reporting sales during the final two months of 2023 were stronger than expected.
On the flip side, JD (NASDAQ:JD) Sports Fashion (LON:JD) stock slumped 15% after the sports retailer lowered guidance after the mild Autumn weather and softer Christmas trading hit sales.
Oil prices rose Thursday, adding to the previous session’s sharp gains on
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